Median sale price of luxury homes rises from August level but falls year over year

After hitting a two-year high in August, luxury home sales in the Denver metro area came back down to Earth in September. Million-dollar property sales fell from the previous month and a year ago, according to Coldwell Banker Residential Brokerage, Colorado’s leading provider of luxury real estate services.

A total of 36 homes sold for more than $1 million in the Denver Metro Area in September, down from 46 a year ago and 71 last month. However, the median sale price did climb more than 14 percent from August to reach $1,422,500 in September. The median price was off 2.9 percent from a year ago.

The figures were derived from Multiple Listing Service data of all homes sold for more than $1 million last month in the Denver Metro Area.

“The luxury end of the Denver Metro Area housing market, like the overall market, experienced an adjustment downward last month,” said Chris Mygatt, president of Coldwell Banker Residential Brokerage in Colorado. “We’ll be looking to the next month or two to see if this was an anomaly or part of a trend.”

Mygatt said that although the local housing market has improved overall the depths of the recession, it still faces challenges. “There are still economic headwinds the market has to contend with, both in terms of the job market and consumer sentiment,” he said. “We’re moving in the right direction I think, but improvement in the housing market will probably come in fits and starts until more of the macro economic issues improve.”

However, Mygatt noted that despite the drop in sales last month, there are still buyers looking for high-end properties. “Luxury properties that are priced appropriately, are well maintained and in desirable areas are still selling in a reasonable amount of time,” he said.

The most expensive sale in the Denver Metro Area in September was a six-bedroom, seven-bath 10,473-square foot home in Cherry Hills Village that sold for $7 million;

Denver boasted the most million-dollar sales with 11, followed by Boulder with 5, Greenwood Village with four and Cherry Hills Village with three;

It took an average of 157 days to sell a million-dollar home in the area, down from 124 days a year ago and 98 days the previous month.

The Denver Metro Area Luxury Home Report is produced by Coldwell Banker Residential Brokerage, a specialist in high-end real estate sales. Through its internationally renowned Coldwell Banker Previews® program, the company is recognized around the world for its expertise in the luxury housing market.

This post is inspired by (ripped from) a blog post from Coldwell Banker’s CEO, Jim Gillespie. He was inspired by Cindy Yoder of Coldwell Banker Vinson Chase in Modesto, California who passionately spoke of the need for integrity and honesty in real estate today. Her reasoning was that her clients – and she rightfully believes most consumers – are nervous today about homeownership. She believes real estate agents have an important responsibility to make certain they are providing sound counsel, advice and answers. Today more than ever. She said that agents who are only concerned with making the sale are doing themselves and their clients a disservice. How true!

Trust is so important. It always is. But today it means even more to everyone when it comes to major financial decisions like homeownership.

Now IS the smartest time in at least 35 years to buy a home. The reasons are fairly obvious. Home prices have dropped and are beginning to stabilize, mortgage interest rates are at all-time lows, allowing homebuyers to potentially save hundreds of dollars a month and thousands over the length of a 30-year loan. In most communities there is an abundance of homes to choose from and, of course, there are substantial tax advantages to homeownership.

But it is important to remember that these reasons ONLY apply to those who are financially secure and not concerned about the threat of job loss. It doesn’t apply to those who don’t anticipate living in the home for several years to hopefully allow the market to correct and build some equity. Homeownership is a long-term investment and not a “get rich quick” scheme.

Each person’s needs and situations are vastly different. It is always important to get as much information as possible before making a big decision. And for the sake of today’s discussion, that means talking with a real estate agent.

When making the call, it is fair to expect the agent to be excited about the potential to gain a new client. That is natural on their part. But it will become obvious if the agent is right for the individual and trying to build a relationship by providing proper answers and advice. Ask tough questions and probe. Explain fears and concerns.

If the agent is good and wants to build his/her business by being a trusted resource, some great information and insight will be provided. A valued advisor will have been found. If the agent is only interested in making a sale, then that agent may not be the right choice.

Of course housing decisions should not be based on this blog, articles in the paper, segments on TV or even by watching interviews of real estate professionals. Homework is necessary to make certain what is believed to be true about housing today is/isn’t true. And rather than get information third-hand, go right to the source. Find an agent who answers the hard questions and provides a solid path towards homeownership (even if it is a long road).

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